Morning Commentary: New Hungary issue trades above par; CEE/MEA primary quiets

By Rebecca Melvin

New York, Oct. 5 – The new Hungary 1¾% notes traded up to 100.15 bid, 100.35 offered on Thursday, after the sovereign priced €1 billion of the 10-year notes at a 1.4 point discount to par.

The notes priced at 98.592 for a yield of 1.906%, or spread of mid-swaps plus 100 basis points, which was the talked price point after price talk was revised during marketing.

Otherwise the primary market for the Central & Eastern Europe, Middle East and Africa region was quiet, following decent action for the week so far, including Abu Dhabi’s $10 billion of notes offered in three tranches.

Meanwhile, market focus shifted to economic data.

On Thursday U.S. Labor Department data showed weekly unemployment claims fell by 16,000 to 260,000 claims last week, as economic activity showed signs of returning to normal following recent hurricane-related disruptions.

On Friday, the Labor Department will release its widely watched monthly non-farm payrolls report. The Department warned last week that the hurricanes will likely affect September’s employment figures.

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